High mortgage multiplier

ciaraz

Hi all,

:eek:I am new to this and hope I am doing this correctly.
I earn £20k p.a. and want to get a mortgage.
I have no debts or outgoings so can pay up to £800 per month.
Does anyone know what lender/broker could possibly secure a high multiple on such a low income.
Any advice is greatly appreciated.:huh::huh:

Welshlassie

How much deposit do you have??? You're best bet is to save as much deposit as possible at least 10% would be a minimum I would suggest, then see what the market is doing at that point, you may find house prices have dropped further and banks are lending slighty higher multiples.
There aren't many banks out there at the moment doing more than about 3.5.

Kavanne

You don't want to be comitting to £800 a month on your mortgage. Your bills will be easily another £200-250 on top of that. What does that leave you to live on? £300-400? if that. Don't do it. It won't be fun.

My after tax income is £1200. I pay £269 on mortgage, I top that up to £500 in my bills account to cover everything else. I save £50 for Christmas, £75 for my internet and towards my next motorbike insurance renewal. So so far that is £1200 - 500 - 50 - 75 = 575. I also save £100 pm into my ISA as I am on a tracker mortgage and I am preparing for rates to go back up.

So I, personally, have £475 to buy everything else. Food, clothes, going out, emergencies.... and to be honest, I am missing out on things even with that disposable income. If it was £300 I would be a recluse!!

CountingPenniesClaire

I agree with Kavanne. OH and I have set ourselves high targets for paying off our mortgage and sometimes struggle to meet them. We are lucky that these targets are mostly by choice but I would hate to think that we had to meet them, particularly when things like replacing car tyres and other costly but necessary wokr needs to be done. Always better to under promise (fix reasonable monthly payments) and then over deliver (overpayment when and as you can). Also, easier said than done, I know, but try to save as much as poss for the deposit.

CPC